Sell or Process Further

Jackson Lumber Company incurs a cost of $372 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $548 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $528 per hbf, which can be sold for $760 per hbf.

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Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9

	Sell Rough-Cut (Alternative 1)	Process Further into Finished Cut (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues, per 100 board ft.	$__	$__	$__
Costs, per 100 board ft.	___	___	___
Income (Loss), per 100 board ft.	$__	$___	$___